Minnesota Partition Action

Understanding the Minnesota Partition Action

A Minnesota partition action is the legal method to end joint ownership of real estate. When you inherit a family cabin or real estate partnership in Minnesota, the law ensures you are not forced to stay in a co-ownership against your will.

Minnesota has updated the legal framework for these cases under Chapter 558A. The new legal framework has introduced a fairer system that aims to secure the highest possible price for the owners.

Additionally, it provides security measures for the sentimental or family value of inherited land.

Methods of Property Division

Under Chapter 558A, courts have higher flexibility to choose the right path for each case. There is no longer a strict requirement for physical division if splitting the land would result in financial loss to the owners.

Partition by Sale

In most cases involving houses or lakefront cabins, the court orders a sale. The law requires the property to be sold at its full market value. This usually involves a standard listing on the open market rather than a public auction. The net proceeds are then distributed to the owners in proportion to their shares.

Partition in Kind

Partition in kind involves physically splitting the land into separate pieces. This is typically used for large areas of land where splitting would not reduce the total value. The court looks at whether the land can be divided and any family attachment to the property.

Determining Your Financial Share

The money from a sale is not always split evenly. In a Minnesota partition action, the court considers each person’s specific contributions during the period of ownership. If you paid taxes, insurance, or repairs while a co-owner did not contribute, you may be entitled to a reimbursement or credit from the final proceeds.

Proper accounting of these costs is vital to protecting your equity.

The Role of Mortgages and Liens

Minnesota is a Lien Theory state. If you are holding the deed to your property, the lender has a lien on it as security for the mortgage debt. In a Minnesota partition action, the court ensures that all mortgages and back taxes are paid up to that point before any co-owner can take their share of the equity.

This legal process provides the next owner with a clear title and secures their bank’s interests.

In the case of a disagreement about a jointly owned property, you have the option to dissolve the co-ownership. Contact us today to discover an equitable way to your financial freedom.